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Author Question: Consider the following cost curves for Firm X, a perfectly competitive firm.FIGURE 9-8Refer to ... (Read 61 times)

Ale

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Question 1

Consider a perfectly competitive firm. Which of the following equalities could hold true in a short-run equilibrium but not in a long-run equilibrium?
◦ P = MR
◦ P = AR
◦ TC = TFC + TVC
◦ P = AVC
◦ P = MC

Question 2

Consider the following cost curves for Firm X, a perfectly competitive firm.



FIGURE 9-8

Refer to Figure 9-8. Firm X is producing output level Q2 where price = P2. Which of the following statements about this firm are correct?
1. P = MC = SRATC = LRAC.
2. There are economic profits to attract new entrants.
3. Firm X is producing at its minimum efficient scale.


◦ Statement 1
◦ Statement 2
◦ Statement 3
◦ Statements 1 and 3
◦ Statements 2 and 3


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Marked as best answer by Ale on Oct 12, 2022

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Ale

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Reply 2 on: Oct 12, 2022
Excellent


scottmt

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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